MIRA INFORM REPORT

Report Date :

12.01.2012

IDENTIFICATION DETAILS

Name :	MYLAN LABORATORIES LIMITED [w.e.f. 05.10.2011]
Formerly Known As :	MATRIX LABORATORIES LIMITED
Registered Office :	Plot No. 564/A/22, Road No. 92, Jubille Hills, Hyderabad – 500033, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.11.1984
Com. Reg. No.:	01-005146
Capital Investment / Paid-up Capital :	Rs. 312.680 Millions
CIN No.: [Company Identification No.]	U24231AP1984PLC005146
TAN No.: [Tax Deduction & Collection Account No.]	HYDM02247A
PAN No.: [Permanent Account No.]	AADCM3491M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture of Pharmaceutical Ingredients.
No. of Employees :	5000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (65)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 65300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. Company can be considered normal for business dealings at usual trade terms and conditions.

NOTES : Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Laxmi Narayan
Designation :	Accounts Department

LOCATIONS

Registered Office/ Corporate Office :	Plot No. 564/A/22, Road No. 92, Jubille Hills, Hyderabad – 500033, Andhra Pradesh, India
Tel. No.:	91-40-27700363 / 30866666 / 23550543 / 66327722
Fax No.:	91-40-27700343 / 30866699
E-Mail :	sheela.vadavalli@matrixlabsindia.com investorrelations@matrixlabsindia.com matrix@matrixlabsindia.com nagaraj.bodige@matrixlabsindia.com ashwini.kandlikar@matrixlabsindia.com
Website :	http://www.matrixlabsindia.com
Factory 1 :	Survey No.10, Gaddapotharam, Kazipally Industrial Area, Jinnaram Mandal, Medak District, Andhra Pradesh
Factory 2 :	Plot Nos.38,39,40,49,50 and 51, Phase IV, IDA Jeedimetla, Hyderabad, Andhra Pradesh, India
Factory 3 :	Plot No.36, Phase IV, IDA Jeedimetla, Quthbullapur Mandal, R.R. District, Andhra Pradesh, India
Factory 4 :	Plot No.16/B/1, S.V. Co-operative Industrial Estate, Jeedimetla Village, Quthbullapur Mandal, R.R. Dist, Andhra Pradesh, India
Factory 5 :	Survey No.10/A, Gaddapotharam, Kazipally Industrial Area, Jinnaram Mandal, Medak District, Andhra Pradesh, India
Factory 6:	Plot Nos.14, 99 and 100, Chemical Zone, Pashamylaram, Patancheru Mandal, Medak Dist., Andhra Pradesh, India
Factory 7 :	G. Chodavaram Village, Poosapatirega Mandal, Vizianagaram District, Andhra Pradesh, India
Factory 8 :	Formulations Plant Plot No: F-4 and F-12, MIDC, Malegaon, Sinnar District Nashik, Maharashtra, India
Factory 9 :	House No. 8-2-293/82/J-II Plot No. 564/A/22, Road No. 92 Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

DIRECTORS

As on 24.09.2010

Name :

Mr. Rajiv Malik

Designation :

Director

Address :

B-6B, Gangotri Alaknanda, New Delhi – 110019, India

Date of Birth/Age :

12.03.1961

Qualification :

M.Sc.

Experience :

26 Years

Date of Appointment :

28.07.2005

DIN :

00120557

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24231AP1984PLC005146	MYLAN LABORATORIES LIMITED	Director	1/7/2008	28/07/2005	-	Active	NO
2	U67120MH2006PTC161204	AXIS HOLDINGS PRIVATE LIMITED	Director	20/06/2006	20/06/2006	3/4/2008	Active	NO
3	U24230GJ1984PLC007440	CONCORD BIOTECH LIMITED	Director	29/09/2007	24/03/2007	4/12/2009	Active	NO
4	U73100MH1997PTC106267	MYLAN PHARMACEUTICALS PRIVATE LIMITED	Additional director	1/10/2007	1/10/2007	28/03/2008	Active	NO

Name :

Dr. Hari Babu Bodepudi

Designation :

Whole-time Directors

Address :

11, Sai Ansh Arcade, Durgavihar Nagar Colony, Trimulghery, Secunderabad – 500015, Andhra Pradesh, India

Qualification :

COO and ED

Date of Birth/Age :

01.07.1964

Date of Appointment :

07.10.2009

DIN :

01119687

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24239AP2005PLC047551	ASTRIX LABORATORIES LIMITED	Director	29/11/2006	29/11/2006	-	Active	NO
2	U73100MH1997PTC106267	MYLAN PHARMACEUTICALS PRIVATE LIMITED	Director	28/04/2008	1/2/2008	7/10/2009	Active	NO
3	U24231AP1984PLC005146	MYLAN LABORATORIES LIMITED	Whole-time director	7/10/2009	7/10/2009	-	Active	NO

Name :

Mr. Sanjeev Kumar Sethi

Designation :

Director

Address :

Plot No.24, Quiteland, Gatchibowli, Hyderabad – 500008, Andhra Pradesh, India

Qualification :

M.Sc.

Date of Birth/Age :

22.07.1967

Date of Appointment :

07.10.2009

DIN :

02168682

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U73100MH1997PTC106267	MYLAN PHARMACEUTICALS PRIVATE LIMITED	Whole-time director	1/8/2008	28/03/2008	7/10/2009	Active	NO
2	U24231AP1984PLC005146	MYLAN LABORATORIES LIMITED	Director	24/09/2010	7/10/2009	-	Active	NO

Name :

Mr. Susanto Banerjee

Designation :

Whole-time Directors

Address :

J1003, Spring Field Apartment, Sarjapur Road, Belan Dooru, Bangalore – 560102, Karnataka, India

Date of Birth/Age :

28.11.1966

Date of Appointment :

22.09.2011

DIN :

00182743

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72200KA2004PTC033196	MBROKER (INDIA) PRIVATE LIMITED	Director	30/06/2005	30/06/2005	-	Strike off	NO
2	U72200KA1998PTC038932	MPHASIS SOFTWARE AND SERVICES (INDIA) PRIVATE LIMITED	Director	28/09/2007	29/12/2006	31/07/2009	Active	NO
3	U24231AP1984PLC005146	MYLAN LABORATORIES LIMITED	Whole-time director	22/09/2011	22/09/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Nagaraj Goud Bodige
Designation :	Company Secretary
Address :	H.No.5-14-88, INdiranagar Colony II, APHB Colony, Movlali, Hyderabad – 500040, Andhra Pradesh, India
Date of Birth/Age :	02.12.1977
Date of Appointment :	09.11.2010
PAN :	AGYPB3840P
Email :	Nagarajgoud.bodige@matrixlabsindia.com
Name :	Ms. Ashwini Khandlikar
Designation :	Company Secretary
Address :	3-4-512/58, Barakatpura, Hyderabad – 500027, Andhra Pradesh, India
Date of Birth/Age :	01.02.1980
Date of Appointment :	09.11.2010
PAN :	AQAPK5399L
Email :	ashwini.khandlikar@matrixlabsindia.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2010

Names of Shareholders	No. of Shares
MP Laboratories (Mauritius) Limited, India	151382543
MP Laboratories (Mauritius) Limited, Mauritius	78712
The Oriental Insurance Company Limited, India	43514
Joy Ittoop Panikulam	35443
Matrix Esop Trust	20920
Van Den Bogaert Philip	20000
Bernard Sagaert M F M	20000
Matrix Esop Trust	19347
MSPL Limited, Hospet	17699
Nirmal Kumar Mishra	16000
The Industrial Credit and Investment Corporation of India Limited	15435
Chalakkal Krishnan Kutty	15000
Steven Peters P A J	15000
Hossain M.Ejajul	20000
Suresh Babu Ambarker	15000
Michael Wooldridge	12225

As on 24.09.2010

Equity Share Break Up Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign company’s Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.40
Nationalized or other Banks	0.01
Mutual Funds	0.03
Bodies corporate	1.61
Other top fifty shareholders	0.20
Others	97.75
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Pharmaceutical Ingredients.

Products :

Product Description	Items Code
Valacyclovir	2933.59.90
Citalopram	2932.99.00
Acyclovir	2933.59.90

Exports :

Products :

Pharmaceutical Ingredients

Countries :

• US
• North America
• Europe
• Middle – East
• China

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Active Pharmaceutical Ingredients	MT	1930.20	1491.50
Tablets and Capsules	Millions	5000.00	3960.02

Notes:

1. Licensed capacity is not applicable in terms of the Government of India Notification No. 477(E) dated 25^th July 1991.

2. As certified by the management and accepted by the auditors.

3. Includes captive consumption and conversion for others.

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

5000 (Approximately)

Bankers :

• Bank of India
• State Bank of India
• Andhra Bank, M G Road
• Allahabad Bank, Sarojini Devi Road
• The Bank of Nova Scotia
• ABN Amro Bank
• HDFC Bank
• UTI Bank Limited, BEgumpet

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Banks
Term Loan	453.750	653.640
Working Capital Loans	3429.940	3849.280
Total	3883.690	4502.920
Secured Loans and Unsecured Loans a) Long term loans are secured pari passu by first charge on fixed assets and second charge on current assets. b) W orking Capital facilities are secured pari passu by first charge on current assets and second charge on fixed assets. c) Amounts repayable within twelve months in respect of secured long term loans from banks: Rs. 215.000 Millions (31st March 2010: 196.250 Millions). d) Amounts repayable within twelve months in respect of unsecured loans: Rs. 2,075.220 Millions (31st March 2010: Rs. 252.330 Millions). e) Loan from holding company, MP Laboratories (Mauritius) Ltd, has been drawn down in various tranches and each tranche is repayable at the end of five years from the date of draw down.
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Deferment Sales Tax Loan	27.190	29.510
Other Debt	[A]4445.500	[B]1586.620
Total	4472.690	1616.130
(A) Short term loan from Bank - 2072.050 millions, Loan from Holding Company - 2373.450 millions (B) Short term loan from Bank – 250.000 millions, Loan from Holding Company - 1336.620 millions

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells
Address :	Chartered Accountants
Tel. No.:	Coromandal House 1-2-10, Sardar Patel Road, Secunderabad – 500003, Andhra Pradesh, India
PAN :	AACFD3771D
Ultimate Holding Company:	Mylan Inc. USA
Holding Company:	MP Laboratories (Mauritius) Limited
Subsidiaries:	Astrix Laboratories Limited CIN : U24239AP2005PLC047551 Concord Biotech Limited, US Matrix Laboratories BV, Netherlands Matrix Laboratories Inc, US Matrix Laboratories (Singapore) Pte Limited, Singapore Matrix Laboratories BVBA, Belgium Matrix Pharma Group (Xiamen) Limited, Peoples Republic of China Jiangsu Matrix Pharmaceutical Chemical Company Limited, Peoples Republic of China Mchem Research and Development Company Limited, Peoples Republic of China Shanghai Fine Source Company Limited, Peoples Republic of China Matrix Laboratories(Xiamen) Limited, Peoples Republic of China Xiamen Beacon Pharmaceutical Manufacturing Company , Limited Value Pharma International, Belgium Vascucare NV, Belgium Vascumed NV, Belgium Aktupharma NV, Belgium Nutripharma N, Belgium Docpharma Luxembourg – SARL, Luxemburg Servipharma SA, Luxemburg A Pharma BV, Netherlands DAA Pharma SA, Switzerland Farma 1 SARL, Italy DCI Pharma SA, Italy Hospithera SA, France Aprime SA, Belgium AB Medical PRS BV, Netherlands
Fellow Subsidiaries:	Mylan Pharmaceuticals Inc. Mylan Pharmaceuticals SL Mylan GMBH Mylan Pharmaceuticals ULC (1) Mylan Seiyaku Limited Gerard Laboratories Limited, US Alphapharm Pty. Limited, Australia Apothecon BV, Germany Mylan India Private Limited Mylan (UK) Limited, UK Mylan New Zealand Limited Mylan Technologies Inc. Mylan SAS
Associates :	Docpharma BVBA, US

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000,000	Equity Shares	Rs.2/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
156338811	Equity Shares	Rs.2/- each	Rs.312.680 Millions

Note:

• 200,000,000 Equity shares of face value Rs. 2 each.

• 156,338,811 Equity shares of Rs. 2/- each fully paid up

• 156,338,811 Equity shares of Rs. 2/- each fully paid up Of the above :

• 14,999,350 shares represent after subdivision of 2,999,870 Equity shares of Rs.10/- per share which were issued as fully paid up to the shareholders' of the erstwhile Vorin Laboratories Limited, Medicorp Technologies India Limited, Vera Laboratories Limited, Fine Drugs and Chemicals Limited, Medikon Laboratories Limited and Calibre Engineering Private Limited on their respective amalgamation with the Company, for consideration other than cash.

• 74,841,605 shares were issued as fully paid bonus shares by utilisation of Rs.149.68 Millions from Securities Premium account.

• 151,849,019 shares (31st March 2010 -151,461,255) are held by MP Laboratories (Mauritius) Limited, a wholly owned subsidiary of Mylan Inc , the Ultimate Holding Company.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		312.680	312.680	309.230
2] Stock Options		0.000	0.000	82.730
3] Reserves & Surplus		16020.810	11209.180	8384.020
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		16333.490	11521.860	8775.980
LOAN FUNDS
1] Secured Loans		3883.690	4502.920	4488.470
2] Unsecured Loans		4472.690	1616.130	1989.620
TOTAL BORROWING		8356.380	6119.050	6478.090
DEFERRED TAX LIABILITIES		1154.600	947.100	757.050
TOTAL		25844.470	18588.010	16011.120
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11534.430	8583.060	6131.950
Capital work-in-progress		1187.650	1334.140	1475.070
INVESTMENT		2617.950	1766.570	2318.980
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9827.240	6335.130	3763.870
	Sundry Debtors	5772.680	4843.890	4914.110
	Cash & Bank Balances	146.120	86.010	20.000
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2465.910	1657.380	1052.080
Total Current Assets		18211.950	12922.410	9750.060
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5288.710	3710.560	2952.530
	Other Current Liabilities	2261.330	2107.690	379.510
	Provisions	157.470	199.920	332.900
Total Current Liabilities		7707.510	6018.170	3664.940
Net Current Assets		10504.440	6904.240	6085.120
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		25844.470	18588.010	16011.120

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	28444.150	18680.260	14790.240
		Income from Potential patent infringement suit	0.000	0.000	134.570
		Conversion Income	0.000	0.000	96.510
		Other Income	1352.500	830.010	218.530
		TOTAL (A)	29796.650	19510.270	15239.850
Less	EXPENSES
		Consumption material changes inventories	14194.860	9162.290	7047.320
		Manufacturing service costs	2156.480	1451.240	1113.170
		Employee related expenses	1928.320	1344.250	958.410
		Administrative selling other expenses	1774.670	1256.030	849.720
		Research and Development Expenses	2533.600	2329.440	1776.510
		TOTAL (B)	22587.930	15543.250	11745.130
	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7208.720	3967.020	3494.720
Less	FINANCIAL EXPENSES (D)		432.660	509.810	569.180
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6776.060	3457.210	2925.540
Less/ Add	DEPRECIATION/ AMORTISATION (F)		601.880	464.440	355.820
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		6174.180	2992.770	2569.720
Less	TAX (H)		1616.980	854.430	680.210
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		4657.200	2138.340	1889.510
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5002.550	2864.210	974.700
	BALANCE CARRIED TO THE B/S		9659.750	5002.550	2864.210
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	23423.670	15372.540	12242.360
		Other Revenue	10.140	0.000	0.000
		Potential patent infringement suit	0.000	0.000	134.570
		Interest	1.940	7.490	20.990
		Guarantee Commission	26.100	12.320	22.840
		Other Earning	0.020	1.400	9.910
	TOTAL EARNINGS		23461.870	15393.750	12430.670
	IMPORTS
		Raw Materials	7153.790	4726.510	3397.570
		Capital Goods	556.630	811.990	522.280
	TOTAL IMPORTS		7710.420	5538.500	3919.850
	Earnings Per Share (Rs.)		29.79	13.71	12.22

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	15.63	10.96	12.40
Net Profit Margin (PBT/Sales)	(%)	21.71	16.02	17.37
Return on Total Assets (PBT/Total Assets}	(%)	20.76	13.92	16.18
Return on Investment (ROI) (PBT/Networth)		0.38	0.26	0.29
Debt Equity Ratio (Total Liability/Networth)		0.98	1.05	1.15
Current Ratio (Current Asset/Current Liability)		2.36	2.15	2.66

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject, a subsidiary of Mylan Incorporation, USA is a public limited company, which was started its life on 29th November 1984 as a private limited company. The Company is engaged in the manufacture of Active Pharmaceutical Ingredients (APIs) and Solid Oral Dosage Forms. Also Matrix conducts research and development, and manufacture products at the company's cGMP facilities located near Hyderabad and Visakhapatnam, India. The company's Solid Oral Dosage Forms facility is located near Nashik, about 150 km from Mumbai. The Company's focus on Quality, Safety, Environment and Occupational Health is pronounced and some of its plants are approved by regulatory agencies such as US-FDA, EDQM -EU, TGA (Australia) and some of the largest multinational pharmaceutical companies. The Company had commenced its commercial production in October of the year 1989 with an installed capacity of 72 TPA. The status of the company was converted from private limited to a public limited company on August 29th of the year 1992. Matrix had filed process patent on its Citalopram (API) in the year 2002. During the same year of 2002, API facility of the company at Jeedimetla was approved by Therapeutic Goods Administration (TGA) from Regulatory Authority of Australia. The Company had acquired 54.89% equity in Medicorp Technologies Limited, an API Manufacturer having US FDA approval, TGA Australia, ISO 9000, ISO 14000 certified. During the year 2003, in April, Matrix had successfully filed process Patent applications for 4 products at Indian Patent Office. In May of the same year, the Vorin Laboratories Limited and Medicorp Technologies India Limited had merged with the company. Subject had signed an agreement with William J Clinton Presidential Foundation for the supply of antiretroviral for the treatment of HIV and AIDS patients in Sub-Saharan Africa, South Africa and the Caribbean countries in October of the year 2003 and in November of the identical year, Matrix decided to set up two 50:50 joint venture companies, one in India and the other in Ireland, with a total capital outlay of 3.90 million Euros (Rs.210 millions). Matrix had received USFDA approval for its manufacturing facility at Jeedimetla near Hyderabad in March of the year 2004. The Board of directors of Matrix in March of the same year 2004 had approved the merger of Vera Laboratories Limited, Fine Drugs and Chemicals Limited, Medikon Laboratories Limited and Calibre Engineering Private Limited with itself. Subject had purchased Finished Dosage Facility Located near Nashik in January of the year. In the same year of 2005, Matrix made a strategic alliance with Mchem of China and acquired controlling stake in Docpharma, Belgium. Also the company had received the National Award for R and D Efforts in Industry (2005) in Pharmaceuticals /Chemical Sector from the Department of Scientific and Industrial Research, Government of India. The Government of Andhra Pradesh honored the company with 'Best Management Award' in May of the year 2006. Mylan had completed its acquisition of approximately 51.5% of Matrix's outstanding shares for Rs. 306 per share in cash pursuant to a share purchase agreement (SPA) with certain selling shareholders during January of the year 2007 and the company became as a subsidiary of Mylan. In May of the year 2007, subject had signed an agreement with the Clinton HIV/AIDS Initiative (CHAI) that significantly lowers the price of AIDS treatment for second-line anti-retroviral drugs (ARVs), as well as a new, once-a-day pill that is currently cost prohibitive in the developing world. The transaction for purchase of the residual stake in M Chem Group of Companies had been completed in January of the year 2008, with the purchase of the residual stake, the effective holding of Subject in M Chem group of companies, through its wholly owned subsidiary, stands at 97%. As on October 2008, subject and Aspen Pharmacare Holdings Limited, South Africa has executed agreements pursuant to which, generally speaking, Matrix's wholly owned subsidiary Matrix Laboratories BV would divest its stake in Fine Chemicals Corporation (Proprietary) Limited, a South African based 50-50 joint venture between Matrix and Aspen, to Aspen and additionally Aspen would divest its stake in Astrix Laboratories Limited, an Indian based 50-50 joint venture between Matrix and Aspen, to Matrix.

Review of Operations

The Company posted yet another impressive year of performance. During the year , the turnover, on a stand-alone basis, increased by 52%, while on a consolidated basis, the sales increased by 16% over the previous year. The increase in sales was mainly due to the increase in Finished Dosage Form product sales in both ARV segment (Anti retro virals) and Non-ARV segments. The net profit before tax and exceptional items also showed an impressive growth and has increased by 123% on a stand-alone basis and by 110% on a consolidated basis compared to previous year. The Company increased its API and FDF capacities by 25% compared to the previous year. The Company continues to invest in capacities to retain or gain market share in growing or emerging markets.

During the year , the Company filed 21 US Drug Master Files (DMFs) and 19 EU DMFs / Certificates of Suitability to European Pharmacopoeia (CEPs). With these filings, as on March 31, 2011, the cumulative number ofDMFs filed by the Company, together with its subsidiaries and associates is 152 US DMFs and 145 EU DMFs / CEPs.

During the year, the Company, on behalf of Mylan and its affiliates has filed 24 ANDAs with the FDA, 30 with European regulatory agencies, 1 with the WHO, 16 with Canada regulatory agencies, 15 with Australian regulatory agencies, 6 with New Zealand and 22 with RSA. Aggregate filings covering Finished Dosage Forms during the year were 114 in numbers. Cumulatively, the Company made the filings of 113 ANDAs with the FDA, 66 regulatory filings with European regulatory agencies, 31 filings with the WHO, 30 with Canadian regulatory agencies, 28 with Australian regulatory agencies, 18 withNew Zealand and 35 with RSA aggregating to 321 regulatory submissions. During the year , the Companysecured approvals for 24 ANDAs from the FDA, 9 from the WHO, 22 from the European regulatory agencies, 2 fromCanada regulatory agencies, 8 from New Zealand regulatory agencies and 8 from Australian regulatory agencies (TGA).

During the year 2010-11, the Company entered into a definitive agreement for purchase of a business undertaking, comprising of research and development and manufacturing of Active Pharmaceutical Ingredients (APIs) from Mylan India Private Limited, whose registered office is at Plot No.1A/2, MIDC Industrial Estate, Taloja, Panvel, District Raigad, Maharashtra - 410 208. The transaction was closed during the month of June, 2010.

During the year 2010-11, the Company acquired an FDF manufacturing facility at Aurangabad, which will help in capacity augmentation of FDF manufacturing in coming years. The facility is currently gearing up for the required regulatory approvals.

The Company had executed sale deeds in June, 2011, with another pharmaceutical company, for sale of one of its manufacturing facility situated at Survey No. 10/A, Model Industrial Estate, Gaddapotharam, Jinnaram Madal, Medak District, Andhra Pradesh. The Company had, earlier, obtained the approval of the shareholders for the sale of the said manufacturing facility. The assets of this manufacturing facility have been written down to the expected realizable value since the assets are no longer in active use and the sale does not have any material impact on the operations and the financials of the Company.

Restructuring of subsidiaries of the Company

The Company held 40% equity interest in Matrix Laboratories BVBA, Belgium through its wholly owned subsidiary Matrix Laboratories BV, Netherlands. Matrix Laboratories BVBA held 100% equity interest in Docpharma and its group companies (‘Docpharma Group of Companies’). During 2009-2010, the Company initiated formalities for the sale of its investment in Matrix Laboratories BV, together with investment in Matrix Laboratories, BVBA and its step down subsidiaries Docpharma Group of Companies.

After receipt of all the necessary regulatory approvals, on September 17, 2010, the following sale / purchase of investments have taken simultaneously:

(a) investment in Matrix Laboratories Inc., USA has been sold by Matrix Laboratories BV, Netherlands to Matrix Laboratories (Singapore) Pte Limited;

(b) investment in Matrix Laboratories (Singapore) Pte Limited, along with investments in Matrix Laboratories Inc and Matrix Pharma Group (Xiamen) Ltd and its step down subsidiaries have been sold by Matrix Laboratories BV, Netherlands to Matrix Laboratories Limited; and

(c) investment in Matrix Laboratories BV, Netherlands, along with investments in Matrix Laboratories BVBA and its step down subsidiaries, have been sold by the Company to Mylan Luxembourg 2 Sarl, a wholly owned subsidiary of Mylan Inc., the ultimate parent company of the Company.

All the above sale / purchase transaction have been effected at price equal to the fair value arrived at by an independent valuer.

Following the above transactions, Matrix Laboratories (Singapore) Pte Limited, became the global holding company of Matrix Laboratories Limited. Matrix Laboratories (Singapore) Pte Limited, holds investment in Matrix Laboratories Inc in addition to the investments in Matrix Pharma Group (Xiamen) Limited., and its step down subsidiaries.

Contingent Liabilities [As on 31.03.2011]

a) Claims against the Company not acknowledged as debts:

· Income Tax and Indirect Taxes claims disputed by the Company relating to issues of applicability and classification: Rs. 994.34 Millions (31st March 2010: Rs.311.84 Millions)

· Local Authority Taxes claims disputed by the Company relating to issues of applicability and determination: Rs. 3.85 Millions (31st March 2010: Rs. 4.13 Millions)

· Claims arising from contractual disputes: Rs. 1.01 Millions (31st March 2010: Rs. 0.95 Million)

b) The Company has given corporate guarantees to various banks for facilitating sanction of working capital loans to its subsidiaries viz., Matrix Pharma Group (Xiamen) Limited, Matrix Laboratories Xiamen Limited, Jiangsu Matrix Pharmaceutical Chemical Company Limited aggregating : Rs. 2262.82 Millions (31st March 2010: 1573.25 Millions). The amount outstanding against such guarantees as at 31st March 2011 aggregate to Rs. 1474.08 Millions (31st March 2010 : Rs. 576.80 Millions)

c) During the course of 2009-10, the European Commission had stated that it initiated proceedings against Matrix and other companies which entered into agreements with the innovator relating to a product. Matrix is cooperating with the Commission in connection with the investigation. As it is not possible to determine with any degree of certainty any potential liability associated with these proceedings, no amounts have been recorded in the Company’s financial statements. However, Management believes that the ultimate outcome of this matter is not expected to have a material adverse impact on the company’s financial statements.

Bankers Charges Report as per Registry

Name of the company	MATRIX LABORATORIES LIMITED
Presented By	N. Anjaneyulu, Company Secretary
1) Date and description of instrument creating the change	Facility-cum-Hypothecation Agreement dated 18^th February 2004. Hypothecation Agreement on movable assets dated : 18^th February 2004.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.87.500 millions towards Export Finance - Pre and Post shipment in INR and USD and Letter of Credit / Guarantee
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	First charge on the Current Assets of the Company i.e., Stocks of Raw Materials, work in progress, finished goods, consumable stores and spares and book debts, present and future on pari-passu basis.
4) Gist of the terms and conditions and extent and operation of the charge.	Working Capital facilities of Rs.87.500 millions was sanctioned by the ABN AMRO Bank, Banjara Hills, Hyderabad. Nature of Facility Limit (Rs. millions) Fund Based (FB) Limits Export Finance - Pre & 55.000 * Post shipment in INR & USD Non-Fund Based (NFB) Limits Letter of Credit / Guarantee 32.500 * TOTAL (FB+NFB) 87.500 * Fully Interchangeable. The said facilities are secured as under: > First pari-passu charge over current assets in line with Multiple Banking Arrangement.
5) Name and Address and description of the person entitled to the charge.	ABN AMRO BANK Banjara Hills, Hyderabad.
6) Date and brief description of instrument modifying the charge	Supplemental Facility-cum-Hypothecation Agreement dated 28/12/2004
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Enhancement of Working Capital facilities from Rs.87.500 millions to Rs.369.300 millions by the ABN AMRO Bank, Banjara Hills, Hyderabad. The said enhanced facilities are as follows: Nature of Facility Limit (Rs.millions) PC/PSC/FBD 369.300 LC/LG (sublimit of 1) 369.300 OD/STPLR/FCNR (B) 200.000 sublimit of 1) 4. OD (sublimit of 1) 30.000

FIXED ASSETS

• Land
• Leasehold Land
• Buildings
• Plant and Machinery
• Electrical Equipment
• Lab Equipment
• Office Equipment
• Furniture and Fittings
• Computers
• Vehicles
• Library
• Trade Marks
• Software
• Others
• Patents

AS PER WEBSITE DETAILS:

PROFILE OF DIRECTORS:

Rajiv Malik

Mylan’s Executive Vice President and Chief Operating Officer

Rajiv Malik is Mylan's Executive Vice President and Chief Operating Officer. Previously, he served as Executive Vice President in charge of Global Technical Operations. Malik served in a similar capacity for Mylan since January 2007, when Mylan acquired a controlling stake in Matrix Laboratories Limited, one of the world's largest suppliers of active pharmaceutical ingredients.

As Chief Operating Officer, Malik will continue to be responsible for areas he supervised as Head of Global Technical Operations, including Mylan's global research and development (R and D) centers, and manufacturing and distribution units. He also will oversee the company's generic biologics efforts as well as those initiatives related to emerging markets. In addition, Malik is responsible for enhancing and rationalizing Mylan's global supply chain and expanded product pipeline, as well as leveraging Matrix's capabilities across the company.

Malik has worked for more than 24 years in the global generic pharmaceutical industry. Prior to joining Matrix in 2005, Malik was Head of Global Development and Regulatory at Sandoz. He started his R and D career at Ranbaxy Laboratories, rising to Head of Generics R&D.

Malik earned his master's degree in pharmaceutical technology from Punjab University, India, and has more than 60 process patents to his credit.

S. Srinivasan

Chief Executive Officer and Managing Director

S. Srinivasan is the Chief Executive Officer and managing director of Subject, a position he has held since January 2009. In a 15-year career at Matrix, Srinivasan has distinguished himself in a wide range of functional areas, including finance, sales and marketing, business development and strategic planning. He has made significant contributions to the expansion of the company’s businesses regarding active pharmaceutical ingredients and antiretrovirals.

Previously, Srinivasan has served as Subject chief operating officer. Before that, he was the company’s senior vice president of Strategic Business Planning and Global Alliances. Srinivasan earned a bachelor’s degree in engineering from Madurai Kamaraj University, India, and a Master of Business Administration from the Institute of Rural Management Anand, India. In addition, he is a management accountant certified by the Institute of Cost and Works Accountants of India.

Dr. B. Hari Babu

Chief Operating Officer & Executive Director

Dr. B. Hari Babu holds a master’s degree and a Ph.D. in organic chemistry from Andhra University.

He started his professional career in research and development, followed by working in regulatory affairs, quality assurance and production at various active pharmaceutical ingredients companies.

Dr. B. Hari Babu is currently the chief operating officer and executive director of Matrix and has assisted the company in becoming a world-class manufacturer in the pharmaceutical industry. He also has played an active role in getting significant approvals/accreditations for Matrix from the U.S. Food and Drug Administration, Australia’s Therapeutic Goods Administration and International Organization for Standardization 9000. He has more than 17 years of experience in the pharmaceutical industry.

Sanjeev Sethi

Director

Sanjeev Sethi has a Masters in Pharmaceutical Sciences from Punjab University, Chandigarh. He has 20 years experience in the pharmaceutical industry, in leading companies such as Ranbaxy, Delhi (formulations development and International Regulatory Affairs ) and Sandoz, Vienna (Deputy. Head, Research and Development).

Mr. Sethi is currently Sr Vice President – Global Generics R&D, Mylan. Prior to this role, he held the position of Executive Vice President of Finished Dosage Forms and Technical Operations at Matrix. He has to his credit 40 international patents.

Overview:

Subject, a subsidiary of Mylan Inc. (NASDAQ: MYL), is one of the world’s largest manufacturers and suppliers of active pharmaceutical ingredients (APIs) for a wide range of therapeutic categories, including antibacterials, central nervous system agents, antihistamine/anti-asthmatics, cardiovasculars, antivirals, antidiabetics, antifungals, proton pump inhibitors and pain management drugs.

Based in Hyderabad, India, Subject also maintains an impressive portfolio of finished dosage forms of generic antiretroviral (ARV) products, which treat people living with HIV/AIDS, including pediatric therapies. The hallmark of Mylan and Matrix’s ARV franchise to date is affordability, as it has continually and significantly reduced drug costs. As a result, the company’s ARV products are helping nearly one-third of all people receiving treatment today for HIV/AIDS in the developing world.

During 2009, Subject received the World Health Organization’s approval of the heat-stable ARV tablet, Lopinavir/Ritonavir, which the company formulated before any other company – brand or generic. Subject and Matrix intend to build on this achievement by introducing innovations that expand people’s access to ARV medications and related resources.

The development and manufacture of high quality intermediates and APIs are critical to Subject continued success in delivering innovative and affordable products for domestic and international markets. Subject will achieve this through its dedication to Innovation, Integrity, Reliability, Service and Teamwork.

At Subject, they work around the clock and around the globe to help provide 7 billion people access to medicine. We aim to produce high quality, more affordable pharmaceuticals affordable pharmaceuticals to be made available everywhere, every day – no exceptions. Our global network of employees is obsessed with quality and dedicated to Innovation, Integrity, Reliability, Service and Teamwork.

MILESTONE:

August 2009

Matrix becomes a privately held Mylan subsidiary

June 2009

Mylan announces successful Matrix delisting offer

January 2007

Mylan Laboratories acquires a 71.5% controlling interest in Matrix Laboratories Limited

January 2007

Matrix receives “Fastest Wealth Creator" award in Motilal Oswal Wealth Creation Study for 2006

May 2006

Matrix receives “Best Management” award from the government of Andhra Pradesh

December 2005

Matrix receives "Fastest Wealth Creator" award in Motilal Oswal Wealth Creation Study for 2005

December 2005

Matrix announces decision to acquire controlling stake in Concord Biotech, an Ahmedabad-based biotechnology company with fermentation and bio-catalytic technology capabilities and U.S. Food and Drug Administration (FDA) approved API manufacturing facilities

November 2005

Matrix receives the National Award for R&D Efforts in Industry for 2005 in Pharmaceuticals/Chemical Sector from the Department of Scientific & Industrial Research, Government of India, Ministry of Science and Technology

June 2005

Matrix Laboratories Limited acquires a controlling stake in Docpharma, based in Belgium

April 2005

Matrix and Aspen Pharmacare Holdings Limited form joint ventures in India and South Africa

February 2005

Matrix announces strategic alliance with MCHEM Pharma Group of China

January 2005

Matrix receives "Fastest Wealth Creator" award in Motilal Oswal Wealth Creation Study for 2004

January 2005

Matrix purchases finished dosage facility located near Nashik, about 150 km from Mumbai

April 2004

Matrix signs definitive agreements with India Newbridge Investments Limited and Maxwell (Mauritius) Pte. Limited

March 2004

Matrix’s Board of Directors approves the company’s merger with Vera Laboratories Limited, Fine Drugs and Chemicals Limited, Medikon Laboratories Limited and Calibre Engineering Private Limited

March 2004

Matrix receives U.S. FDA approval for its manufacturing facility at Jeedimetla, near Hyderabad

November 2003

Matrix sets up two 50:50 joint venture companies, one in India and the other in Ireland

October 2003

Matrix signs an agreement with the William J. Clinton Foundation to supply ARVs for the treatment of HIV/AIDS patients in sub-Saharan Africa, South Africa and the Caribbean countries

May 2003

Matrix merges with Vorin Laboratories Limited and Medicorp Technologies India Limited

April 2003

Matrix successfully files process patent applications for four products at the Indian Patent Office

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.74
UK Pound	1	Rs.80.00
Euro	1	Rs.65.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		65

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.